Dangote Sugar Refinery Plc has successfully raised approximately N485.88 billion through its rights issue, marking a significant milestone in the company’s capital-raising efforts. The rights issue, which closed on June 24, 2026, saw strong investor demand, with applications exceeding the number of shares offered by 2.6%. This oversubscription reflects robust confidence in the company’s growth prospects and financial strategy.
The company had offered 8,097,918,827 ordinary shares of 50 kobo each at N60 per share, based on a ratio of two new shares for every three existing shares held by eligible shareholders as of April 20, 2026. Investors submitted 14,595 valid applications for a total of 8,309,447,021 shares, valued at N498.57 billion. Despite the excess demand, all 8.098 billion shares were fully allocated, generating gross proceeds of N485.88 billion.
The Securities and Exchange Commission (SEC) has approved the basis of allotment and results of the rights issue, as confirmed in the company’s announcement dated August 13, 2026. Of the applications received, 13,426 shareholders fully accepted their rights, accounting for about 6.99 billion shares worth N419.18 billion. An additional 1,047 shareholders made partial acceptances for approximately 99.08 million shares valued at N5.94 billion.
Trading in rights on the Nigerian Exchange also contributed to the overall allocation, with 77.18 million shares traded during the acceptance period, amounting to N4.63 billion. Demand for additional shares was particularly high, with 8,241 shareholders who fully exercised their rights requesting an extra 1.147 billion shares worth N68.82 billion. However, only 935.41 million additional shares, valued at N56.12 billion, were available from renounced rights.
Due to the oversubscription, the core shareholder’s request for additional shares was reduced by approximately 211.53 million shares, or N12.69 billion, resulting in the shareholder receiving 78.85% of what was requested. The final allocation shows concentration in ownership, with one shareholder in the highest category receiving about 6.20 billion shares—76.61% of the entire rights issue—while other shareholders across various bands received the remaining shares.
Allotted shares were scheduled to be credited to investors’ Central Securities Clearing System accounts by August 14, 2026, with surplus subscription funds expected to be returned on the same date. The successful completion of this rights issue provides Dangote Sugar with a substantial injection of fresh equity capital, enhancing its financial position and supporting future expansion plans. The overwhelming investor response underscores continued trust in the company’s leadership and strategic direction, setting a strong foundation for long-term growth in Nigeria’s industrial sector.
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